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Journal of Socialomics Mulang, J Socialomics 2017, 6:3
ISSN: 2167-0358 DOI: 10.1472/2167.0358.1000203

Mini Review Open Access

International Human Resource Management

Astuti Mulang*
Indonesia Timur University of Makassar, Indonesia
*Corresponding author: Astuti Mulang, Indonesia Timur University of Makassar, Indonesia, Tel: 0411421974; E-mail: eccetriana@yahoo.com
Rec date: Apr 28, 2017; Acc date: May 29, 2017; Pub date: June 05, 2017
Copyright: © 2017 Mulang A. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use,
distribution, and reproduction in any medium, provided the original author and source are credited.

Abstract

Global competition multinational companies can not only be faced with providing a reliable Human Resources.
More than that the company should have a strategy and valuables sets, namely Human Resources who has
committed, knowledgeable about the company in other countries, unable to compete face challenges and adapt
quickly to new environments. Human Resources should be distributed and allocated in a way that can provide a
competitive advantage. Management of Foreign Workers in this regard through expatriate assignments outside the
country must be done by a company Manpower Indonesia, and with the right choice of strategy is an attempt to
achieve corporate objectives.

Keywords: Strategies; Assignment; Expatriate
Introduction
Global competition faced by the nations of the world have
implications in life. Both in the business world, political, social and
cultural and ideological transformation. The various implications,
could not be addressed by each country to accelerate and adapt on the
global changes. For business organizations, global business will have a
tendency on the activities of financial transactions, but has led to social
interaction such as the establishment of international business
alliances, cooperation between two or more multinational companies
that are designed to benefit collectively.
Regarding the above description [1] said that Indonesia as the
country with the fourth largest population in the world, Indonesia has
provided a meaningful opportunity for foreign companies that
traditionally rely on the expatriate her to mobilize and maintain
operating companies the in Indonesia. The presence of expatriates in
Indonesia is human capital (Human Capital) for the company. Attitude
to do to prepare themselves for global competition that the business
world includes: the intensification of the activity of research and
development resources business organizations that are adaptive, re-
engineering on the pattern of applied management, prompted the
government to deregulate and Debirokrasi rules and regulations for
the sustainability of a healthy business climate, and expand your
business or the company's operations to various countries. Having
regard to the variety and complexity of the challenges facing the
attitude that should be done, it will be much needed human resources
superior quality and able to compete. The human resources are
committed to the company and ready to compete face challenges is a
treasure among other resources owned by the company, both tangible
and intangible.
In addition, the management system is required Human Resources
global prospective, meaning that management practices are applied
must be flexible. Because it is not possible patterns applied
management will go through various countries with different human
objects. Human Resources of the company should be distributed and
allocated in such a way in a way that can provide a competitive
advantage and is a form of strategic management objectives. For the
company's goals can be achieved, then the function of Human
Resources should be integrated with the company's strategic
management process, meaning that a Human Resources manager
should:
• Have a strategic planning input, whether it be human issues related
to business and disability in describing certain strategic
alternatives.
• Have knowledge of the purpose of corporate strategy.
• Understand the types of skills, behaviour patterns and attitudes
needed to support the strategic plan.
• Develop a program to ensure that employees or existing workers
have the skills, behaviours and attitudes required by the company.
Associated with the above description, the subject matter that is
discussed in the Human Resource Management Human Resource
Management International is the possibility of employment outside the
country who automatically have differences such as differences in
culture, climate and values that become trust.
The scope of International Human Resource Management in
general, [2] limits the scope of the International Human Resource
Management includes the function, the type of workers and countries
involved. The scope of the question is as follows:
Human resource management functions include:
• acquisition function, include: planning, withdrawal and
socializing,
• function development, including: training, development and
coaching,
• maintenance functions, including: health and safety and labour
relations,
• motivational functions, including: evaluation, rewards,
compensation and discipline.
Type workers or employees may differ according to country
of origin, namely:
• Employees who come from countries where the company operates
(local national)

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ISSN: 2167-0358
Citation: Mulang A (2017) International Human Resource Management. J Socialomics 6: 203. doi:10.1472/2167.0358.1000203
• Employees from the company's home country (expatriates)
• Employees from third countries (third country national)
• While the countries involved in the operation, namely: a.
Countries where the company operates (host country) b. The
company's home country (home country), c. Other countries
• Schuler [2] divides the scope of the International Human Resource
Management Home Host.
Nationals local countries expatriates third country nationals
type of employees
Given the breadth of the operating area of International Human
Resource Management, functions and activities performed in
International Human Resource Management and a lot more wide-
ranging than the domestic Human Resource Management. There are
activities conducted International Human Resource Management but
is not carried by the domestic Human Resource Management. These
activities include adjustments to the rules and regulations or
international law or the law of the country inhabited including the
rules governing taxation, administration related to the expatriates,
such as a passport/visa and other required documents, as well as the
implementation of orientations for the expatriate.
These adjustments are applicable in any country in which the
foreign worker will work. According to the Regulation of the Minister
of Manpower and Transmigration [3] requirements that must be
owned by foreign labour employed by the company in Indonesia is:
Have the education or work experience of at least five (5) years in
accordance with the position that would be occupied.
Willing to make a statement to transfer the skills to Indonesian
Manpower especially companion. What is meant by the Labour
Companion (Candy, 2008) is a manpower Indonesia designated state
and prepared as the companion of Foreign Workers.
Can communicate in Indonesian. In the case of positions that would
be occupied by Foreign Workers. Already have work competency
standards, then that will be employed must meet those standards.
• Indonesian Manpower assistants must have a background in the
field of education in accordance with the position that would be
occupied.
• Employers of foreign workers are required to report the use of
foreign labour, and the companion of foreign workers in the
company periodically every 6 (six) months to the director
controlling use of foreign workers.
• Director controlling use of foreign workers, reported permit use of
foreign workers issued periodically every 3 (three) months to the
Minister with a copy to the director general.
• Besides those described above, International Human Resource
Management also has a broader perspective than the domestic
Human Resource Management, it is very possible because they
must deal with a very heterogeneous group of employees.
Therefore, it is often in the practice of the International Human
Resource Management allows for further participation in the life of the
employee [4]. It is necessary in the activities of selection, training and
effective management. Because the International Human Resource
Management in practice is more influenced by external factors, such as
the form of government, economy, and business practices host the
International Human Resource Management has a very high risk of the
failure of the implementation of the strategy. This failure was caused by
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ISSN: 2167-0358
Page 2 of 5
the failure of workers who are stationed abroad, especially in the
context of environmental and attitudinal adjustment is not successful
[5].
Definition of foreign workers
Talking about the International Human Resource Management
means we are talking about the workforce or employees who come
from other countries, and matters relating to the preparation work in
the destination country. Workers coming from other countries called
the Foreign Workers for the country in which the foreign workers
employed. Minister of manpower and transmigration [3] concerning
procedures for utilization of foreign workers. What is meant by
Expatriates are foreign nationals visa holder to work in Indonesia [6]
defines that a person who left his home country to the other country to
work, referred to as the Expatriate [4] categorizes people living outside
their own country to work called Expatriate. While [7] in relation to
Human Resource Management, in more detail to explain that:
employees who work in an office or a company of which he is not a
citizen of a country where the office or enterprise is located, but is a
citizen of the country where the central office or the company is
referred to as the Expatriate.
From the above it can be concluded that not all foreign labour can
be referred to as expatriate, but an expatriate is a foreign worker. This
paper is more focused towards foreign labour status as an Expatriate.
Understanding of strategic management
Before defining management strategy, it is necessary to define the
word strategy. The word strategy comes from the ancient Greek that
strategies. In military circles said the strategy is intended to win a
battle. Mathis [7] defines strategy as the process of identifying the
organization's goals and actions necessary to achieve that goal.
Strategic management is a process or an approach to dealing with
competitive challenges and opportunities faced by the company, in
other words the management strategy is the number of decisions and
actions or efforts that led to the formulation of an effective strategy to
help achieve the company's goals. Management strategy is basically a
set shapes strategy, a process to analyse the competitive situation of
companies in developing corporate strategy objectives and devise a
plan of action and the allocation of resources that could improve the
chances tangible achievement of organizational goals [6]. The choice of
strategy is a response to substantial questions regarding the
competition, which is how companies will compete to achieve the goals
and mission. The decision in this selection is often associated with the
underlying problem, for example, where it will compete, how to
compete and in what manner will compete. In practice, the decision
maker little or no attention to the problem "by what means will
compete".
This decision has a broad impact on the company. Failure to
anticipate problems above can lead companies do not know how they
can compete, either in their own country where the parent company's
operations and in other countries with which branch it operates.
International Human
Resource management strategies is a link between the international
Human Resource Management with strategic goals and objectives that
are intended to improve business performance and develop corporate
culture, to encourage and help to create, innovate more flexible.
Strategic International Human Resource Management can also be
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Citation: Mulang A (2017) International Human Resource Management. J Socialomics 6: 203. doi:10.1472/2167.0358.1000203
interpreted as a pattern of human resource deployment planned and
an act intended to assure and increase that the company can achieve its
objectives.
In connection with the above description, the presence of the
candidate expatriates Expatriate in this case, it must be properly
managed by large companies that have international networks (MNCs
= Multinational Corporations) if the company it wants workers to
succeed in their foreign assignments. Reviews These companies should
be aware that high-performing employees in their own country can
Easily Become a low-performing employee in other countries [2]. To
Anticipate the possibility that the company must have a plan and what
the right selection strategy used for corporate purposes and to equip
workers in the work in other countries where the conditions are
different situations and with the parent company or the company's
home (home country).
Strategies in the application of International Human Resource
Management is done through a variety of activities, namely:
Planning in international human resource management
According to [2] Human Resource planning in general were
properly requires certain measures relating to the activities of Human
Resource planners towards a competitive company. These steps are:
• Collection and analysis of data to forecast the demand and supply
of human resources for the expected future business planners
• Develop Human Resources planning purposes
• Design and implement programs that can Facilitate the
achievement of the company in Human Resources planning
purposes
• Supervision and Evaluate programs that are running.
The fourth stage can be implemented for the achievement of short-
term goals < 1 year, 2-3 years medium, and long term > 3 years. As well
as planning activities, Human Resources in general above, in
International Human Resource planning is required an external labour
market analysis from, whether they are local or domestic or
international. This analysis is Necessary to Determine the needs or in
the provision of labour associated with the skills and expertise required
in international business. In the framework of this plan need to
consider several aspects, Including:
• Determination as well as the identification of potential or criteria
that must be met at each level of the management.
• Process of identifying crucial factors in bisnis International.
• Formulation of steps that must be done to Streng then the
commitment to the development of an international career.
• Linking Human Resources planning by strengthening the skills
required by the executive using strategic business planning.
• Expansion of opportunities for self- development workers.
• Distribution of units in the business held by focusing efforts on
international business goal achievement.
Recruitment and Selection
Recruitment prospective employer/employee is the process
undertaken by the company to find workers potential, while the
selection of related to the process where companies seek to identify job
seekers/applicants using the knowledge, skills, abilities and other
features to help the company Achieve its goals. The strategy of the
company will have an impact directly on the type of workers who were
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ISSN: 2167-0358
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sought to be recruited and selected by the company. The process of
recruitment and selection of candidates for expatriate done more
rigorously selective Danlebih. Prospective workers required is truly
ready for Reviews their cross-cultural challenge, has a highly
competent and experienced in their field, have extensive knowledge
about the major companies Similar in other countries, preferably from
executive groups. The models that can be applied in the recruitment
and selection by the companies that operate and on an international
scale by [8,9] Among others:
• Selected from the group of the national executive that is in the
parent company (home country), to be placed in the company
branch (host country) in other countries.
• Recruiting executives from countries where labour in the country
or locally.
• Trying to adopt executives who have an international perspective
without restricting citizenship.
From the survey on expatriate selection, [5,10] reported that as
many as 1,750 organizations representing 20 million employees and
175,000 professionals Human Resources policies using a selection of
international assignments are as follows: pre-assignment using the visit
as much as 60%; their language training as much as 34%; family
readiness evaluation as much as 26%; evaluation of cultural
understanding as much as 15%.
Settings or management staff
In the framework of the arrangement or management staff must
consider a variety assumptions as following: at the same position, but
in a different place then would require specific skills, cultural and
physical environment influences locals must be carefully Considered
and should be avoided estimates that wrong, besides than it according
[11,12] in the settings or managing staff should use a variety of criteria
International, Among others:
• Prospective employees must have a personality that is patient,
persevering, full of initiative and flexible accept or to experiment
on new things in the job.
• Prospective employees should have high technical skills and
appropriate technology with progress. In addition to technical
skills, prospective employees must have the skills of
communication also in the which includes mastery of the
language.
• Prospective employees should have a high tolerance for differences
of race, creed or religion, color, values, habits, and customs and
traditions.
• Prospective employees must be highly motivated and defended.
• Prospective employees should have a good behaviour in the
membership of a larger community.
Orientation or Debriefing
This activity is done to equip prospective employees who will go to
other countries where he is assigned. Besides debriefing in their
respective sectors, supply is also given with the aim to adapt, by
studying the pattern of life and culture of the country that will be
addressed. Here is intended as a characteristic cultural understanding
in their behaviour or way of doing something wherewith formed by the
surrounding environment within a long time. This In the case of
companies should help employees who will be placed in the other state
to be a part of world culture and have an identity as an expatriate.
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Citation: Mulang A (2017) International Human Resource Management. J Socialomics 6: 203. doi:10.1472/2167.0358.1000203
Enterprises become part of the culture of other countries is not
intended as an effort to be like living in other countries, but also as an
effort to improve the ability to understand strangers through reviews
their attitudes and behaviour, including emphasis on language
acquisition. Mastery of the language includes both mastery
communicate orally and in writing and mastery of communication
ethics. Mastery of communicating important ethics for ethics in
communication between countries differ from one another with that.
Unfamiliarity in the ethics of communication may cause failure or
workers repatriated to the country of origin before the work is
completed. Orientation activities carried out next, when it has arrived
in the country of destination. Orientation is meant to do an
introduction to the environment, introduction to the unit of work and
workers, as well as the orientation of the work that became the main
tasks of workers who concerned. The workers who can understand
Reviews their culture, language and patterns of another state is
considered as a worker a cosmopolitan item, namely workers who have
high sensitivity to cultural differences, language and patterns of life
and be able to accept and adjust to the peculiarities of foreign people's
behaviour.
Training and development
Training is defined as a business that is planned with the learning
providing facilities work associated with the knowledge, skills and
behaviour of the workers/employees. While the development about the
way to gain the skills and patterns of behaviour that can improve and
increase of their ability so that work can overcome the challenges faced
today or job come. In the future the company will change strategy
often generally require changes in behaviour patterns, types, levels and
skills mix through recruitment, selection, training and development
workers/employees, so the company is able to describe the strategy of
what is appropriately applied to change In practice, education and
training program is a comprehensive coverage, starting from the
interpersonal relationships, understanding of local culture or local,
understanding the values and consumer behaviour through to
operational global company, the transfer of the corporate culture,
values in the culture of pluralistic, business systems , international
strategy, socialization and other techniques. In the expatriate training
and development process often tests also try to understand the culture
of another country by way of sending it to other countries during a
certain time (pre-assignment) to learn to adapt to new environments.
Provision of compensation and rewards
Compensation and rewards practice at the expatriate has a
significant role in defining a strategy. The compensation is intended to
attract and retain qualified workers in business between countries,
facilitate movement between branches in different countries, the
maintenance relationship that is consistent and keep the compensation
provided is rational and supports efforts to excel in minimal
competition with competitors terdekatnya. In the achievement the
purpose, there are two principles in Determining remuneration system
compensation or International company’s items, namely:
• The concept of remuneration in accordance with the central
company/the company's home (home country)
• The concept of remuneration with the remuneration referred
modular. That approach with a modular approach is separated
from the compensation package that regulations of the country of
origin or adapted to the regulations in the countries where the firm
operates (host country)
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ISSN: 2167-0358
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Compensation system is carried out depends on the rules and
agreements with the company's home early in countries where the
company operates.
Conclusion
Global competition in the business world for companies that have
an international network of very influential on the need for quality
human resources and the company's efforts in determining what the
right strategy is used to deal with competitors. Human Resources
(expatriate) quality is that committed, ready to compete face the
challenge, have high competence in the field as well as fast-adapt.
Companies large companies that assign workers to other countries
where the company operates, should know that the workers/employees
who perform well in the country can change be under-performing in
other countries.
To address this the company must have a plan and choosing the
right strategy. Strategies can be done through various activities items,
namely: planning, recruitment and selection, settings and management
staff, providing orientation or debriefing, training and development,
and compensation and rewards. in the plan required prospective
expatriate workforce needed for the external analysis determine the
skills and labour requirements associated with membership.
Obtained needs through the recruitment and selection process, the
which subsequently prepared given a briefing or orientation. Pre-
assignment is an options strategy that is often done in the process of
training and development. The provision of compensation and rewards
to the expatriate aims to attract and retain qualified workers, ease of
transfer between branches, the maintenance of the relationship
between the parent company and branches and support for efforts to
excel in competition. Compensation and rewards system depends on
the rules and the initial agreement between the parent company and
subsidiary companies.
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J Socialomics, an open access journal Volume 6 • Issue 3 • 1000203

ISSN: 2167-0358